Our View: Walker tax cut plan a good start

More work needed to keep economic momentum going

Wisconsin finds itself in a position relatively few individuals living within its borders are experiencing - with extra money to spend.

Projections indicate that the state collected $912 million more than previously anticipated, and Gov. Scott Walker wants to give a good portion of the surplus back to people through property and income tax cuts.

Walker outlined his plans in his State of the State address to the Legislature Wednesday night, indicating he would deliver $504 million in tax relief over the next 17 months. He said the state can afford to do that because the economy is improving and will continue to do so. He said the economy is "dramatically better," without admitting that it had nowhere to go but up.

Democrats - and some Republicans - say the surplus should be used to shore up education, or to ward off future deficits. These are all areas of need, but Walker is doing the right thing in providing some immediate tax relief to the very citizens who helped create the surplus.

Typical savings would amount to about $100 in property taxes and about $50 in income taxes. The governor also wants to update income tax withholding tables, adding about $58 a month to the income of a typical family of four within the state.

These are not huge amounts, but they are welcome. It should create a bump - albeit a relatively small one - in spending activity, which is always good for the economy.

Walker also deserves credit for admitting, in his fourth State of the State speech, that "there is more work to be done" to get the state's economy to the point of maintaining its current momentum. Walker has mellowed some from the brash union buster he was four years ago, and has developed a more conciliatory approach to governing. That does not mean he will back down from his stated goals, however, particularly when he enjoys a solid Republican majority in both houses of the Legislature.

The governor's popularity will rise - at least in the short term - with the announcement of pending tax cuts. It is a politically shrewd move in an election year and will probably translate into a spike at the voting booth.

If they are a mere campaign promise with no staying power, however, tax cuts can backfire on Walker and the entire GOP establishment standing behind them. People will have a few more bucks to spend for a time, but if the economy tanks over the long haul it will have been a vain exercise that people will see through in time.

That is why Walker and GOP leaders need to follow through, not just on tax cuts, but on other measures to improve the state's economy. They can't give people their "allowance" to spend and simply forget about them after that.

The toughest part of that task will be creating jobs, an area in which the state continues to lag. Wisconsin ranks 37th in private sector job growth over the last 12-month period measured, and Walker will fall far short of meeting his 2010 campaign pledge to create 250,000 private sector jobs by the end of this year.

There are many positive signs, however, pointing to the Walker administration moving the economy in the right direction. Whether he gets another four years to continue in that effort is up to voters. Much can - and likely will - happen between now and November to influence that.

We hope he at least affords himself that opportunity by becoming one of the candidates in the next gubernatorial election in Wisconsin, rather than opting for a presidential bid.

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Our View: Walker tax cut plan a good start

Wisconsin finds itself in a position relatively few individuals living within its borders are experiencing ? with extra money to spend.

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